Bitcoin (BTC) bulls should brace for a potential onslaught from bears as the number of margined short positions on Bitfinex jumps by a little over 378%.
Known to most by the ticker BTCUSD Shorts, the dataset records the number of bearish positions in the Bitcoin market. In simple terms, traders borrow funds from Bitfinex — their broker — to trade bet on bearish outcomes for the instrument BTC/USD. Meanwhile, the value of opened short positions is measured in BTC.
The number of short margined positions on Bitfinex reached an intraday high of 6,468.2202 BTC this Monday, up more than 378% from its previous session’s low at 1,351.72 BTC.
The spike prompted some analysts to alarm about a potential price crash in the Bitcoin spot market, primarily because a similar wild BTCUSD Shorts uptrend at the beginning of last month had led the BTC/USD exchange rate down by almost $13,000 on May 19.
For instance, independent market researcher Fomocap tweeted a chart that